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Delhi Metro to pay property tax to MCD

NEW DELHI: After a long impasse, the Municipal Corporation of Delhi and the Delhi Metro Rail Corporation have reached an agreement on property tax that the latter has to pay to the civic body.

At a meeting between the Municipal Commissioner and the DMRC in March, it had been decided that the Delhi Metro's assets built over MCD land would be divided into three categories and each category would pay a separate rate of service tax.

The proposal was given the go ahead by the MCD Standing Committee meeting on Wednesday.

As per the plan, the property would be divided into essential, commercial-1 and commercial-2 based on usage. On the essential property of the DMRC, including railway lines, yards, and workshop, 5 per cent property tax would be levied as service tax.

On commercial activities, including malls, 50 per cent would be charged and in commercial-2, which would include commercial activities on a big scale, 75 per cent would be charged.

MCD Standing Committee chairman Yogender Chandolia said: “After the meeting in March, the Delhi Metro has paid the MCD a provisional amount of Rs.2.58 crore. Earlier, it had paid Rs.37 lakh. After clearing of the proposal, we expect the Delhi Metro to pay up about Rs.4-5 crore more to settle the property tax dues with us. They were not agreeing to it earlier as they wanted concession on property tax on the lines enjoyed by the railways. However, now we have finally come to an agreement with them.”

The solution has been arrived at after the two agencies were caught up in a long tussle over the use of space for public use and commercial activities. In June last year, the MCD had sealed a few commercial establishments of the Delhi Metro at the Inderlok metro station stating that the station was not paying charges levied on commercial places and so cannot be allowed to continue.

The civic body also wanted the DMRC to pay property tax for using its land to build its stations and tracks.

“It was decided that service charges shall be payable in respect of various properties of the DMRC under three categories. Now the DMRC would have to submit a list of properties under it divided into the three categories,” an MCD official said.

The proposal marking the agreement between the two bodies would now be presented before the MCD House for final approval before coming into effect.

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